Big Support Zone For This Stock
Back
in February I referenced that this stock was hitting new highs, and
that I “hated itâ€. Well, with a 23% correction and 6 weeks later, I’m ready to
begin looking for long opportunities in the stock. We haven’t had a correction
of this magnitude since 2002/2003. That correction was 6 weeks, 15 points or 38%
decline. This decline is 5 weeks at 13 points and 23% decline. DOW is now
sitting in a big support zone from 40-45, and coincidentally the bottom of this
4 year uptrending regression channel is running right through the zone. If you
were to look at a daily chart and overlay the 200 day SMA, that would also be
sitting in this price area. Bottom line, begin looking for daily triggers to
ride this stock up. Stops below the support zone would be warranted. With
over a 10% potential difference between entry and stop be sure to be smart with
position size.
 
All the best,
Derrik